Southwestern Community College’s recent financial history demonstrates financial stability as shown in the College’s audited financial statement reports for fiscal years 2002-2005. A review of the College’s most recent Statement of Net Assets (1, 2, 3, 4), Statement of Revenues, Expenses and Changes in Net Assets (5, 6, 7, 8), and the Statement of Cash Flows (9, 10, 11, 12) give strong evidence of the College’s financial stability. These annual reports are submitted to the North Carolina Office of the State Controller and independently audited by the Office of the State Auditor.

The College’s net assets are one indicator of financial stability (5, 6, 7, 8). The College experienced a slight fluctuation in net assets during the 2003-2004 fiscal year due to the College’s investment in the deployment of a high-performance fiber-optic network. The assets of Southwestern have exceeded its liabilities at fiscal years June 30, 2002-2005, by $16 million, $16.2 million, $15.5 million and $16.1 million respectively.

At fiscal year end 2002, the College was required to implement Governmental Accounting Standards Board (GASB) Statement No. 35, which required depreciation to be recorded for the first time and the expensing of library books which were previously capitalized. This resulted in a $7.6 million restatement and a reduction in capital assets from the prior year. The College calculates depreciation using the straight line method over the estimated useful life of the asset. Capital assets are reported net of accumulated depreciation.

Another aspect of financial strength is the ability of the College to meet its financial obligations when they come due. As presented in The Statement of Cash Flows for fiscal years 2002-2005, Southwestern has successfully met its financial obligations (9, 10, 11, and 12).

Non-financial information may also be considered when assessing the financial health of an institution. Trends of enrollment and FTE are two important indicators. Southwestern has experienced a pattern of growth over the past eight years with regard to both of these factors (13, 14).

Southwestern Community College does not have any short-term or long-term debt. The College manages two endowment funds totaling $25,500 (15).